tv Varney Company FOX Business January 29, 2018 9:00am-12:00pm EST
stuart: once again, the lamborghini will sum it up. thanks for showing me around this high-tech car. emily carter, nature shall come a thank you for joining us. ernie and company forest now appeared stuart: thank you indeed. this is not the way we usually open the show appeared monday, new week and stocks are looking a little wobbly. good morning, everyone. there's a lot going on this week and we've got to open on a cautious know. it is a very modest downturn. a drop of 50 odd point on a 26,000 hours are the dramatic but he will open lower. this may be one of the reasons interest rates are on the rise. to plan 70% on the treasury. that is the benchmark which have now risen above 4% on a 30 year
fixed. another reason for my big tech reports, thursday, apple, amazon built into the stock do not disappoint. two political items. not likely to have much impact on your money. the immigration debate of today. the opening bid, build a wall, and chain migration. in return, 120 million dreamers get a path to citizenship in the state of the union message tomorrow night. the question, will president trump be conciliatory or combated? all the people will be watching to find out. it will be entertaining guaranteed. as usual, huge show for you today. the fall of steve wynn and the ridiculously political. "varney & company" is about to
begin. ♪ >> he had a long-time fear of being poisoned. one reason he liked to even make donald. no one knew he was coming and the food was made. >> you can hear the judge laughing with the absurdities bear. hillary clinton reading from a weird book has president trump gets ready to the state of the union message. a pretaped segment. much more on the content field political grammys. merger monday and then some. dr. pepper snapple bounty they're going to get together. >> $1,827,000,000,000 all cash deal. it's going to bring together
dr. pepper, seven upcoming end of the route here, sun cast with green mountain and remember, you and i were talking about this secretive company, backed by this german family, the ravens out of vienna. they dumped jimmy choo. stuart: does jb -- they own curate. so we've got a secretive german family that owns curate green mountain. now they are marching with dr. pepper snapple and you maintain that the combined company as their vehicle to go after coke and pepsi. liz: that is correct. we'll see more deals this year because of the tax cuts, repatriation or the stock prices of companies that use currency to buy other companies. another record year. last year through $27 trillion. stuart: i would like to be a shareholder of a target company.
we might do quite well. the futures market, where are we going? monday morning. the soaring stock market, but not today. we are going to be down about 50 points. still about 26,500. the stock took a big hit friday after misconduct allegations against steve wynn who was subsequently resigned his rnc finance chair in the stock is down again. this is pretty market down another 5% this morning. big trouble. more and not coming out. lockheed martin. much more money coming up selling a lot of those at 35 fighter jets in the company sees more profit down the road of nine bucks at nearly 3%. we never like to dismiss general electric although perhaps we should. it is still just above $60 per share. look, 1608 on ge. interest rates are rising.
to .70% on a 10 year treasury. that may be a problem for stocks today. james freeman, "the wall street journal" editorial kind of guy. it's a big deal, let's see you. >> i think not. by the way, i'm if the question is to .7% yield on the 10 year u.s. government bond incompatible with the rising stock market, the answer is no. 80s, 90s, the stock market with interest rates a lot higher than they are now. looking down the road further as the federal reserve and other central banks try to pull back from all of the monetary exertions over the last decade, does that present a threat? yes, absolutely.
we are still enjoying historically low interest rates. it is an odd world we are living in. the u.s. government is paying more to borrow for 10 years in italy. how does that happen? that would be another on that rate not going up too fast. stuart: we've made some money on the big tech stocks in the red master, go hide. if i were to sell some of my microsoft stock and put it into a 10 year united states treasury bond, and i say to .7% -- i know it's not much. it is dead safe and i get a tax break on it. >> traditionally that would be sound advice and maybe it still is, but we just had this x factor where we are in really uncharted territory on government bonds. we had the spectacle over the last few years free of negative rates around the world and was essentially a 5000 year government debt bubble.
i don't know if that is standard advice applies. i do know what is encouraging about the year we are reading this we are getting back to consumers, investors, business people making real decisions, creating products and that is what is driving optimism, economy, the markets as opposed to washington conjuring manipulations of the currency. i think this is a good trend. is it going to be rocky if the federal reserve gets back to normal? we will see. stuart: you saved yourself. you may well be on the show tomorrow. very good. thank you, mr. chairman. i've got to get back to steve wynn. the gaming company was achieved as misconduct on decades. judge napolitano is with us this
morning. shareholders have no protection whatsoever for these out of the blue hits that they just took and i think the board has a problem what to do with steve wynn. >> i agree on both. this is a very serious problem in the tip of the iceberg now with respect to steve wynn and his corporation bed directors around the nation. they have an affirmative obligation to know what the inappropriate behavior of their ceos and principal officers when that information, should it become public and materially affect stock value. their job is to preserve stock value elected by shareholders. if they had looked the other way, they have to go. if they didn't know it, they have a duty to know it. stuart: looking to the future, steve wynn's alleged behavior may have jeopardized the license to do business.
it may jeopardize convention bookings in las vegas. >> think about this. there is no due process. just allegations that shows you the power of serious credible allegations in the marketplace. in my end of the world we say innocent until proven guilty. let's lay this out before a jury. that's not the way it works in the marketplace. the market react to it before it even opened with it going down because of these allegations in his response over the weekend which is to resign from the rnc. shareholders have a problem and boards of directors needed to be reminded of their affirmative obligation to know if the personal behavior when revealed it could damage the shareholder stock of principle corporate office. stuart: going forward, too. >> you will be a more intrusive
inquiry into those whose hands corporate responsibility is proposed. stuart: you are dead right, judge. two big stories from the weekend. tiger reserve and he played well. that's number one. left-hand side of your screen. i love this story. roger federer wins his 20th grand slam. absolutely remarkable for a man of his age. best player ever. also talking about the immigration plan and chain migration to let the dreamer stay. louie gohmert i'm not. he will sit next to me, too. but graham is so political. crashing president trump on immigration and the alleged old. he used about that. trump was right about that. stay right there.
an investment firm and can raise his 12 month price target to $320 not like a minute to 45. across that a look at 320. netflix subscriber growth, the peak of it could still be years away. down about free market. apple, another report of production cuts for the iphone 10. who is saying it now? >> it actually follows up on jpmorgan analyst saying last week that apple is going to be forced to cut its production of the iphone 10 in half. they predicted 40 million unit in the first quarter this year, now predicting 20 million units. why? $999. others have complained that there is no touch i.d. on this new one and the other innovative features not that innovative. that is hurting the bottom line. i will say the iphone sales,
the iphone seven plus an a+ still going very strong. you've got to have apple's problems with the iphone 10 certainly not what they were hoping to be. stuart: moving on to the grammys. musicians throughout the night. you better roll that tape. >> remember that this country was built by dreamers, for dreamers, chasing the american dream. these kids can't be forgotten and are worth fighting for. >> remaster tired, your poor or any evergreen tunics rescue. trento ever, an op-ed comes to the president's defense. the truth and trumps vulgarity, the author thereof, another "wall street journal" editorial board are a? yes, i am.
trained to use a president trump was right in those comments he made about africa, haiti and el salvador. in what way was he right? cannot he was was right in the sense that those countries are chaotic. they are corrupt, violent and very poor and you know who agrees with them? a lot of immigrants to this country. that is why they risk their life savings, leave their loved ones to my breaks up families that they come here looking for a better life. rejecting the squalor of these countries. stuart: are we to the point where if you say this country is dirt poor, in poverty and dictatorship in that country happens to be majority black, you are saying not, is not where we are? >> it was a big mistake for the other sad to say that was racist. of course he chose haiti and
africa, obviously places where black people comes from, but it's ridiculous to think these are very poor countries anti-immigrant. i think he's also wrong because i'm very pro-immigration. he is also wrong that these people are a liability to this country. they are the most ambitious risktakers in the world are they risk everything to come here. corey booker spent 11 minute dressing down because she wouldn't cooperate the comments by trump and the more important point is love will have democrats played in basically this problem in latin america? they push socialism. they used latin america as their playground for their socialist
ideas they can sell in this country. just go down the list. the sandinistas, hugo chavez, blocking the free trade to deal with columbia, giving my name to the former guerrilla party and el salvador. president yvonne insisted they would give money while jailing opponents. they love socialism and they can't sell it here, they push on these push on this country does not mix these countries back in poverty. stuart: you also say the other side of the coin that the president was probably wrong to use inflammatory language about foreign countries. >> he was wrong to use the vulgarity and i think he's also wrong about immigration. msn that i think these very desperate people, the story of our country often bring with them, like i said incredibly hard work ethic. they are risktakers. rained risktakers in the match but the real economy.
so they are an asset. i'm all in favor of making the system legal so that they can be legalized. i understand the arguments against all of these illegal people. the idea of thinking that just because they come from poor countries they cannot be in a country that is wrong. stuart: does a breath of fresh air. >> thank you. stuart: jeremy corbyn, the leader of the socialist labour party in britain has a solution for homelessness. it is by everyone the house. in our next hour, a familiar name for pro football, play for the giants and eagles. we'll talk about the precipitous drop in super bowl ticket prices and the return of the xls 1015
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[inaudible conversations] stuart: i could tell the crowd was shouting pro-him out. i really do agree with that. nonetheless, woods completed the final round since august 2015. shot an even 72 and finish three under for the tournament. they said they felt good. welcome back, tiger. roger fedor were won the australian open. it is his 20th grand slam title. look at that. this man is 36 years old. stuart: his career seemed to be fading a bit and now it's come back as winning grand slams again. stuart: the sport we have to be asset. >> such an important point you made. so punishing these days.
the rockets are better, rallies or longer, a lot of injuries, and enhanced error. >> are really good guys. stuart: i've got to get the same. the latest from the british left. the u.k. party leader jeremy corbyn has announced that the wind the next election labor will buy every homeless person in britain a house. as long as he pays for it, great. but he won't. but on the street. liz: we want to fix homelessness are we tried giving people who can handle a house to house. that's not the way to fix income inequality. stuart: monday morning. we will open the market in five minutes time. we will open down. this is unusual. much of this year, much of last year reopened every monday on the upside.
be close. ashley: a slight victory up slightly. liz: flatten my wife ashley. stuart: three seconds. here we go. we are going to open lower. down 44 points up. look at the level. 26,568. two tenths of 1%. how about the s&p 500. in percentage terms it is down the same amount. a quarter of 1%, seven points and the nasdaq composite after huge run-up recently indicator is down about a third of 1% and down across the board and we are down normally. ashley webster and elizabeth
with keepsakes and scott shalit v. i've got to start with rising interest rates. two by 7% on the 10 year treasury. the mortgage rate above 4%. this is a problem for the market. james freeman said no it's not. >> i've got to tell you i'm going to split between you and jean. the speed of the interest rate as long as they continue to creep up slowly at historically low levels, the market can absorb it. we haven't seen that yet. >> everybody talks about inflation. it's a real interest rate problem. it's healthier for the market to normalize but it's been hard in a world that is so not normal. that's what the problem is. as we see the interest rate scare back to levels except for a mortgage broker.
a nice steady rise is healthier for the market and the sooner we get back to levels we expect to see with this type of activity 3.5% gdp and higher rates is good for everybody. >> up until now the only game in town. as interest rates rise there's other options and safer options for people to take to .7%. you could do that. i'm going to ask scott shellady why on earth do wear sunglasses in london where the sun don't shine. number two, what comes first? 27,000 are told that? >> my heart tells me we have a pullback at some point in time. my hand also tells me there's so much cash out their after this tax covered the good news the president been able to get sentiment turnaround.
if we have some sort of event we have is dsl off because there's capital to want to stop that and get in on something they've missed out on. nothing goes straight out. that's the problem. i've written a couple pieces to say the higher rico the more defensive you have to be. again, you're going to feel next year if you're all stuck in cash. that is the conundrum. we slowly trudge higher. stuart: clean cut. we understand that. big tech report their profits this week. wednesday facebook and microsoft. there is to apple and google. i want to know what the companies are going to do any extra money from the tax cuts. stock buybacks and dividends. what about you?
>> special dividends and capital expenditures, don't forget a lot of mergers and acquisitions because i think a lot of deals have been talked about but they haven't had the interest to do something about it. >> stock buybacks and higher dividend would surely boost stock buybacks. >> that money is going to be hard to trickle down as far as the tech sector grows. i know we've seen some good news here with onus is by some of these companies. i used to say a puppy isn't just for christmas anymore. the bonuses and just for christmas anymore. i want to see a further rise in my wage increase. if wages go up with some of these things rather than buybacks and stocks going higher and see if we can get the employees making more year-over-year and a one-off
christmas bonus. >> the left will go nuts. >> you've got to say to yourself what is the stock buyback in his paying down debt and investment as well. bear funds and investment back into the company. i think keith is right. you'll see a lot of deals boring and as the company repatriate cash and now you're talking down 27,000 after companies report. the president said in davos, yes. a lot of companies are waging raises. trantor when he gets back. keep in scott, seems to me there's a competition. they've all got a jump on board. this pressure, what about me. >> a lot of pressure acting.
>> absolutely. the court of social opinions. if you want your brand to do well, you have to come to the plate with some of these rewards. >> we've got another report at the slowing down at the iphone 10. that is what they cut the production two. >> this is what is predicted to do by the nikkei asia reviewed today jpmorgan said the sales have not been that apple wanted. one of the reasons is the price around a thousand bucks. stuart: as they walk up to the earnings report, >> record-breaking iphone sales are expected in the fourth quarter of last year. they are still doing very well, but the iphone 10. stuart: he settled down on the market. this is not a big loss by any means. right now we are down a fraction than .1%.
26,588. bigger sales as we like to say. that's 35 fighter jet program expects profits to rise later on this year. premarket lockheed was a good actual market is down to bucks at 342. never forget general electric. you can. $16.4 per share as we speak. keith, back to you. you think ge is going away. repeat that, please. >> i ain't it is still on death watch. we don't recognize the company 10 years from now. i just cannot possibly do the companies surviving us the american economy can be. stuart: is a traitor type guy you in guy you in delhi are chosen to $16 ge? >> not yet. it's still all about the cash and more research says that will
be a short-term crunch number one. number two talking about if you broke them up it would be worth what it is now. the sum of the parts is the worth of the hole in the hole wasn't worth the sum of the parts. stuart: who would've thought. liz: ge is the only remaining member of the dow when it was first constituted. stuart: it could be out. 1606 general electric. again today after allegations of misconduct against surfacing again steve wynn. shareholders have no protection. wynn down another 10 points a day and the board is on the spot. >> the board is absolutely on the spot because this is not only operationally a concern for these guys, but in the united states the board is theoretically responsible for
the oversight of its executives. they've got a real problem if this gets more serious and i think it will. stuart: then we have intel and they've told chinese firms about a flaw before they told the government. >> diaz and this is extraordinarily disturbing on any number of levels, not the least of which is a key supplier to the united states government in addition to other businesses supplies. this is really raising serious questions. stuart: at the next background, would you touch their stock? >> i'd be very careful. we all like a cybersecurity is a problem that is something that
disagrees. number two, think about what if the information got in the wrong hands and something that happened at a stock like intel. i'm staying away. stuart: keith, scott, thank you for joining us on this very interesting monday morning. for the first time in a long time i can remember we are down 16 points. stuart: kenny thing capital for that? apple is down and that accounts for 20 losing dow points without apple the dow would actually. still ahead, new york's andrew cuomo suing along with two other states to stop the tax bill. my question. on what grounds. we will deal with that in our
11:00 hour. louie gohmert will be in the studio sitting right next to me. is he going to agree to keep some dreamers here? contentious stuff on its way. ret me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. knowing that the most important goals are yours, is how edward jones makes sense of investing. stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com hi, i'm the internet! you knoarmless bowling.lt? you got this, jimmy!
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and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. stuart: not much of a loss. a loss on a monday morning but i minus four at 10, 26,303. i'm not calling him much of a loss that i've got to talk to you about delta's new service animal role. it is not sitting well with some passengers. get into it, nicole. >> the new rules go into effect on march 1st. they are emotional support animals. also the service animals. they want the service animal has
gone through the training and you can emphasize that the airlines because so many people, on and try to claim that they are service animals. the downside to this with all the rules going into effect you have the advocates for travelers saying that it violates a transportation air carrier access for 48 hours of documentation so if they were trying to fly within 48 hours of an emergency, they would be able to do so. don't try and take your animal on the plane if it's not really a service dog. stuart: my pet snake will not be making an appearance. let's get serious for the president's immigration deal. build the wall and the lottery in chain migration. the dreamers, some of them, 1.8 million get a pat to citizenship it look who is here in new york city, louie gohmert,
texas republican. >> great to be with you. stuart: you build the wall, and chain migration, and the lottery system. you do that for us. what is wrong with doing that first and then you say okay, 1.8 million dreamers can say. have you got a problem with that? >> in a single together we are back to 1996. because the millions that i won't be one point made. stuart: you oppose that? you wouldn't do this? >> i've been very consistent. if we build the wall where we needed, secure the border. then we can work out what we do with the people here. every time legalization, amnesty of any kind, daca is mentioned, and it slowed to a trickle. there's so many surging in here before the deal is done that
they are being pulled back from the border to process people. we are back to catch and release. stuart: that is a serious problem. >> it's not one point made. it's millions. stuart: you don't have the votes to get the money to build the wall, to get the political support to and chain migration. you don't have the votes without adding some dreamers stay in the same bill. >> we do in the house. the problem is the senate. stuart: y go into a bill that is not going to resolve anything. stuart: is got to secure the border. there is no question. the american people is made clear if you want the majority in congress and the presidency, you've got to be about securing the border and 10 senators that president clinton is dates, steve mentioned coming around,
they are going to get serious because they hear from folks back home. it is going to be amazing when we get done in the way of working things out. stuart: have you got no heart, louie gohmert? i am a legal immigrant, duly minted citizen. i stood in line, paid the fee as an avid big enough human being, big enough american to say you do that with the law and security and laundry and yet i'm okay with one point made. i'm okay with 3.5-inch dreamers. >> i've got a big enough hard when i'm on the border in the middle of the night and i see what parents have brought their young children through to get them in this country are, i know if this parents were here and took their children through that, their children would be taken away. what parent would take their kids through that, risk their child especially a girl getting
into sex trafficking because these drug cartels are brutal and now we keep talking about amnesty, even more coming. the president was brilliant. he throws out a number of times more than the democrats had done. people are seeing them for what they are. stuart: listen to what nancy pelosi said about the president's immigration plan. roll that tape, please. >> last night the president put forth a plan. that plan as a campaign to make america white again. they are changing the character of our country by what they are putting forth. a tear to the eye of the statue of liberty and the heart of people here playing by the rules. stuart: what you said your colleague in the house? >> setback martin luther king jr.'s dream by the tenures by
talking like that. she can't see them losses through the colored lenses. we have got to see people for who they are and what they are. if they are good for america and we are good for them, let's bring them in legally and she wants to talk about race. sad. stuart: pleasure to have you with us. thank you. still ahead. a veteran gives a rare corvette to his son. the vet gave the car is a gift to himself were returning home from war. i will have that story just a moment. and our next next hour, kansas reformed asks college students with the president's state of the union speech and the university hated it even though it hasn't happened yet. you can't make it out. we'll be back.
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>> splitting your car or three ways is not easy. splitting money through raises a lot easier. >> totally immersed toward, absolutely gorgeous. i gave the thumbs up and said you just purchased that car. >> this story is going to have a happy ending. >> great caretaker for his dad's vehicle and to be frank with you, that's exactly what we are. stuart: the basis for one of the episodes of "strange inheritance." jamie colby with us now. hold on a second. a guy goes off to war in vietnam. he comes back to a 1957 corvette. >> more than anything. needs a reason to live, to survive. gets back, buys the car.
he is a single guy. next thing you know he marry someone with five children. cargoes in the garage. he pays nothing for it. brand-new, sits there for 25 years. sadly he gets cancer, dies, leaves it to his son. his son for 25 years hangs it up so there's no pressure in the tires come it takes incredible care of it and he decides he has to go to auction. the family that buys it is that not just because of the car. this car collect her's in indianapolis they bought it because it is a story behind it. i give them a lot of credit because they sold it. but you think you went for? stuart: i'm guessing 120, 150 -- 200,000. >> $675,000. >> at the funeral of his father, a ceremonial flag was a purple
hearted battery. i say take your gadfly. he said i prayed for the right tire. it belongs with the car. and he gave it to the family. if you watch no other episode and i know you will, tonight is the night because he had died in the most historic fashion collection addresses this woman inherits from her godmother. chanel, dior, and she was a quaker. stuart: wait a second. what time? >> 9:00 at 9:30 p.m. every monday you will get two new ones from now on. stuart: two new episodes. you're okay. the contempt of president trump just keeps rolling and rolling, doesn't it? where are the reasonable people on the left? they do exist. we will be back with that at the
stuart: they still hate him. yes, i know it's a strong word but i think it is applicable. say they are contemptuous of him. the left is not backing away. their response to the trump presidency as extreme as ever and by the way as divisive as ever. last night's grammy awards were textbook example. like all the award shows it is supposed to be a showcase for talent. instead of it was a showcase of contempt, contempt for our president. hillary clinton reading excerpts about a book of gossip of the white house. what has that got to do with music? i predict another drop in ratings. nancy pelosi said, trump's immigration plan is plan to make
america white again. nancy pelosi said i'm not sure $1000 goes very far for anyone. she is sitting next to nancy pelosi the richest woman in comment, who repeated her comment that the bonuses were you crumb. how out of touch can you get. per pert wally outraged maxine waters calls the president a racist and despicable human being. representative al green call for the president's impeachment several times. okay. where are the responsible democrats in all of this? we haven't her much from them. democrat senator joe manchin is the lone standout saying we don't need that, after pelosi's make america white again comment. words spoken are very hard to walk back. words spoken on tape are impossible to walk back because your political opponents will use them over and over. president trump should know that by now but appears democrats have not learned that lesson. i will close like this. the left continues to spew
hatred and contempt for this president. that is dangerous for our constitutional republic. the second hour of "varney & company" is about to begin. ♪ stuart: all right, 32 minutes in on a monday morning and we're down 50 points. that is not that much on 26,500 index. but, oh, look at the big tech names. facebook is down. amazon up another $12. 1414 is the price. microsoft is firmly above $94 a share. google is up four bucks, closing in on $1200. apple a big loser down nearly three bucks at 168. ashley: microsoft hitting all-time high by the way. stuart: i'm so glad you chimedded. ashley: cheer you up. stuart: thank you, lad. don't forget, oil $65 a barrel
as we speak. the president will unveil his immigration plan or perhaps more on his opening gambit at the state of the union message tomorrow night. he said build the wall, end chain migration, end the lottery and some of the "dreamers" can stay. liz peek, foxnews.com columnist is with us now. that is the president's opening gambit. i say it is the basis of a pretty good deal. what say you? >> i think it is terrific. extremes on both ends hate the deal which tell you it's a pretty good starting point. democrats hate it. they do not want a deal. let's be honest. they do not want a deal. stuart: of any kind? >> of any kind on immigration. that takes away from their political points and things they are talking about up coming to the election. no question my mind, he could say amnesty for everybody forever they would oppose it. i think that is true. stuart: i could see you who the right would oppose it, amnesty. i see how on the left, most on
the left would oppose it but surely there is enough ground in the middle on both sides of the aisle to do a deal based on the president's opening gambit? >> i think more importantly, stuart, there is tremendous support from almost everything he talked about from the american people. if you look at polling getting rid of diversity visa. no question about it, 80% of the country or something like that want to get rid of it. they want the daca people to say, not immediate capitulation, you don't have to do anything right way you're legal, what the president has done includes up to 1.8 million immigrants is boeing way beyond what everyone expected him to. it will take 10 to 12 years guess what, a lot of people come into the country take, eight, 10, 12 years to get in. this honestly this is fair and reasonable starting point. it will be negotiated down but i think the point that you're making is right, if the people in congress answer to their
voters, good question, they will support this deal. or something very close to it. stuart: okay. stay there, liz. want more from you on the market which i get to right now. we are actually down 68 points on the dow industrials now. we have dropped below 26,600. down 62 as we speak. the big deal this week, those companies on your screen right now, the big five technology companies. wednesday we get earnings from facebook and microsoft. thursday, apple, amazon and alphabet. gary b. smith, kadena group president joins us now. gary, my question is not what kind of earnings they're going to report, i don't know. i want to know what these big tech companies are going to do with the money they bring back to america and the extra money they get from tax cuts? i suspect it will go to stock buybacks and higher dividends. what say you? >> i think it will depend on the company, stuart. i think if there are companies fighting for their life, they
will use it to try expand the territory or beat their competition. if it is companies in a very, very good position, and i'd say maybe of all the ones you just mentioned maybe google or amazon, they will probably sit on their cash hoard an use it like any army would, with extra munitions to wait until the enemy approaches and then use it as mortar fire. some will, you know obviously have to spend and some will sit on it. like apple has sat on their cash hoard even though it was overseas for years. they're starting to get in a fight for their life as you mentioned earlier. they're dropping iphone sales. they will probably use to it fight off the samsungs of the world. stuart: hold on a second, gary. liz, what do you think they will do with the money? >> first of all we've seen a number of them announce pay raises and bonuses for their workers. we've seen from amazon and apple
expands here in the united states. i will see acquisitions, yes, some people have looked for a long time particularly from apple and also of stock buybacks. stuart: let me throw this at you. if they go for stock buybacks and dividend increase the left will go crazy. the rich are getting richer. the rich will hog the benefits. they're already saying that. >> there is pushback against the change how you repatriate earnings, saying apple is big winner that it is a scam. now they have taken this big advantage windfall because of change on the tax rate on repatriated earnings. this is something that everybody, two or three years ago thought was a reasonable change we had to make, not disadvantaging companies. we were only company taxing foreign earnings the way we were. this is something we had to do. by the way, shareholder buybacks and dividend increases also benefit an awful lot of endowments and savings accounts and pensions.
yeah, that affect a great many americans. it is not a bad thing. stuart: look at the state of the market. we are currently down 60 odd points at 26,500. gary what comes first? 27,000 on the dow, or a significant pullback? which is first? >> well i guess it would depend on what you define as significant. if you're talking significant is anything over, i guess in these days 5%, i'd have to say, what we have 1 1/2% up side versus 5% downside. given the fact that i think the market kind of feels like we're in melt-up mode, that even a 60 point down day is probably a buying opportunity. i would say it looks like 27,000 is almost a stamp dunk. ashley: wow. stuart: fascinating. gary, i have to ask you about ge. it is in the news. not for its fine stellar performance but for its drop. do you think it will be around in say a couple years time?
>> in pieces and parts it will be. looks like they're, you know, the ge of the '50s and '60s was kind of like ibm back then. it was the one. just like ibm had to go lean and mean and spin off various parts, i think ge is going to. i think there will be a ge. it will be a shadow of its former self under people like jack welch. stuart: liz, hard to believe, isn't it? ge fading away to $15 a share. >> yeah the bad news or maybe the good news is, analysts, many of them are coming outgoing negative on the stock. that suggests we're getting close to a bottom. that is called capitulation. that is really true. many big guns are saying oh, sell the stock. my guess it will have a downside but my guess is there is a floor forming there. are very -- valuable parts, the
power industry which did incredibly bad in the fourth quarter. it is not gone but it needs to be put back together. stuart: would you buy it at 15, yes or no? >> 12. stuart: gary b. smith, would you buy it at 15, yes or no. >> i would not buy it at any number. there are many better stocks out there for your money. why put a dollar in. ge? stuart: well-said, gary b. smith. i have video about paris, flooding the river seine. 1500 people evacuated from homes. same number of homes without power. after weeks of very heavy rain. one of the wettest winters on record for paris. look at that. less than a week until the patriots and eagles face off in the super bowl. ticket prices have actually gone down. i want to know why. former eagles punter, sean lan
stuart: check that big board. we are down 62 points. sounds like a lot it is only a quarter of 1%. the dow still at 26,500. however even in a down market, earlier today we still had eight dow stocks hitting all-time highs. a couple have retreated but nonetheless, walmart, united tech, visa, home depot all hit highs. okay, backed off.
there is more, microsoft, jpmorgan, goldman and united health. they're still up. all of them at record highs in a down market. how about that? now this. ticket prices for the super bowl are dropping. i have got some numbers for you. on stubhub the cheapest ticket is 2800 bucks, down more than $2,000 this time last week. other ticketing sites are reporting a similar decline. look who is here. sean lan delta, a punter in the nfl. that is different from a kicker. stop laughing at me. why do you think prices for super bowl tickets are down so much? >> i was fortunate enough to play super bowl xxiv and 25 for the giants. tickets were $75 a piece. four years later, it is 150. thousand you're talking about $2500. stuart: that is secondary market. >> i think fact minnesota had a chance to be in the game.
they lost in the championship game. playing in their home stadium. that is part of it. stuart: it is minnesota in february. who wants to go to minnesota in february. >> that highs are 11 degrees for the weekend. people may be backing off. stuart: everybody hates the patriots but i didn't know the eagles unpopular as well. i'm told both teams are unpopular. >> they're unpopular if they're a fan of rivals. patriots have the terrific run. boston area with great fans. philadelphia eagles fans are terrific. stuart: you played for the eagles you have to say that. >> it is true. stuart: you publicked for them. >> eagles, rams, packers, giants. stuart: you had pretty good run. >> i was pretty lucky. stuart: in illinois they're considering a bill in the state legislature would ban children under the age of 12 from playing tackle football. flag football okay, no tackling. i say that is a problem for the game down the roads in
youngsters are out of it. what say you? >> it could be. remember the mothers are the ones, mothers will allow the kids playing or not playing. get through to them, tell them, safety is all-time high. there are other sports where youngsters play get more injuries than football. if those young kids don't play, down the road they may not be candidates for nfl. stuart: a lot of bad publicity about concussion. >> there is. rightly so. stuart: last one for you, vince mcmahon as you know, bringing back the xfl. okay. if you play in it, you have got to stand for the anthem and you can not have a criminal record. can't get on the field, even a dui. you can't be on the field. do you think he is going to make this thing work? >> i'll tell you what. it will open a lot of people's ice, wow, see what kind of league he has. if he doesn't compete with the nfl, football in the spring, people love the sport, i think they watch it. those other things very interesting. he capitalizing on what has been
a problem for the nfl. stuart: are there enough, not being stupid and sarcastic here but are there enough players to go around and who don't have any kind of criminal offense? >> i think there is. i think there is. in the nfl, unfortunately 10% of the bad get 90% of the publicity. people think everyone ising doing it. it is not the case. i know. i was there. it will be interesting to see if that works. i'm looking forward to it. stuart: i think tom brady is the greatest quarterback of all time and i think he will lead the patriots to another super bowl victory. i take it you disagree with me. >> i can't disagree. i played five years with the eagles. would love to see them win. stuart: have you no loyalty? >> tom brady is terrific quarterback. how can you pick against him? all they do is win. i think it will be a great game. we'll see what happens. stuart: the under/over is 58, highest over. not that i'm a betting man, i bet the under. where would you go? >> i'm not a betting man with,
eagles defense and patriots defense i would agree with you. stuart: what is the difference between punter and kicker? >> the kicker kicks the ball through the goalposts and scores points. the punter comes in on fourth down when your team has not made first down yardage. that is bad thing when iminto the game. when you win, usually don't punt very much. when you lose, they -- stuart: they can't touch you. >> they can knock your head off. but they have to do it properly. if they don't do it properly they get a penalty flag and life is good for me. stuart: that thanks for joining us. >> thank you, sir. stuart: the flu season on track to be among the worst in a decade. we have numbers about are now after this. after a day like this,
stuart: and the look into the future to give a very strong outlook. the stocks at record high. now it is up nearly four bucks at 348. we always cover general electric because we can't believe how far it's come. $16 and nine cents a share is the current quote. now this. it has been a deadly flu season, one of the worst in 15 years. gerri willis is with us, with a story, can you you can quantify it, how bad it is? >> its all of full. 37 children have died from the outbreak alone. seven alone last week. they think this will be as bad as 2014-15 outbreak which 57,000 people died. takes a long time to count all
the deaths because you don't really know sometimes. not everybody gets hospitalized this is super serious across the nation. we have 12 states, actually 14 now, because florida and kentucky are in the mix too, where massive numbers schools are shutting down. in the schools we're seeing as many as 25% of kids staying home. either because they're sick or their parents are afraid they're going to get sick. what i think is really important, what people need to understand, we may not have reached the peak of this outbreak yet. here is how we know. what the cdc tracks something called hospitalizations per 100,000. right now, last week, 41.9 people were hospitalized per 100,000. and as you can see from this full screen right here it is up from two weeks ago, 36.9, still trending higher. so we're not at peak quite yet. you need to be careful. watch people in your family, especially those who are super young, five and under. the elderly, people who have compromised immune systems and pregnant ladies also at risk
here. so it is important thaw watch out for folks. it is the usual symptoms, stuart. i mean, run any nose, fever, get chills, all the normal things. the reason it is so serious this year, it is that h3 strain this is so difficult for people. it is very strong. as you know the vaccine is not working this year. only 1/3 of folks who get it are free from the flu. and there is a second strain out, h1n1 strain as well. so you have two different strains of the flu virus. one especially deadly. then the vaccine is not working well. so you put that all together, it's a dangerous environment. stuart: thank you very much for quantifying it with objective numbers. that is interesting. gerri, thank you. >> you're welcome. stuart: the veterans, they still got it the federer won his 20th grand slam, tiger woods completed his first -- you're a golfer. >> i am. stuart: he completed his first final round since 2015. great stories.
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show me the big-name tex. look at that facebook down. apple down. microsoft hitting another all-time high. now this. president trump's rift with the media, i think that did putting it mildly, it is the subject after new book from our next guest. the new book is called, "media madness, donald trump, the press and the war over the truth." howard kurtz wrote it. he is with us this morning. it is first interview on the book on fbns that correct? >> that is correct. stuart: pick a side. whose side are you on? is the media really crazed? >> a book called media madness that is interesting question. there is ton of exclusive reporting here to explain the overwhelming, negative, often person, sometimes hostile coverage of this president, journalists who privately or not so privately on twitter disparage this president, don't like his street fighting style. it is not just idealogical, not
just on the left, some conservatives don't like this president. it is cultural and visceral. at same time, exclusive reporting about self-inflicted wounds at white house. leaks that damage the president. some dysfunction some which is cleared up. so it is tough on both sides. stuart: i'm looking at it from the contempt, the just keeps on flowing from the media. it knows no bounds it seems to me. it seems like it is personal. i know some of the people. i don't know whether they're quoted in your book, i know some of these people. i mix with them frequently and it is personal. they're utterly contemptuous. they can't stand the guy. >> i think a lot of that explains the stories selection, the russian obsession, all that. not to say there are not fair reporters and not some legitimate reporting. i think there should be aggressive coverage of every president but when you look at the words that are used, alzheimer's, crazy, unhinged, thug, racist, some which said privately some journalist as i
document in "media madness" you see how person this is. by the way donald trump goes after journalists, that is what makes the war. they make money marketing together anti-trump crowd. they are part of the resistant. do you think it will change? stuart: i don't i think the it will change the die is cast. >> some crave their approval if the early months i thought there would be a cease-fire. it is very clear now in the president's interest to go after press corps that his supporters believe not only are unfair to him, he is a politician, he is big boy, he can handle it, but disdain them. that is why it resonates. journalists are invested in narrative that the president is out of control, that he is bad for america. that the russia probe might bring him down, all that. stuart: now germane to that, we're just getting i think early number, early ratings, tv ratings for the grammys last night. it is a 20% ratings drop last
night compared to the previous year. and i think this has a lot to do with the opening of the show which was just an anti-trump diatribe t continues what you're saying about the media's contempt for the president. >> reminds me the nfl ratings dropping. we've seen it with the golden globes and emmys, oscars. it seems to me that it makes all the hollywood people feel good to go after the president. there is lot in the book about celebrities and horrible language they use about this president but you're excluding part of the country. i imagine some sets turning off when it gets that blatantly political. make fun of the president, sure. every president gets made fun. this is different. stuart: why is it, the cultural elites, depest the man? why is it? >> they were convinced he wouldn't win. that he couldn't win. so they looked bad there. there is a new york, washington, l.a. bubble in which all the people they know and hang out with feel the same way. they lose track of the fact that
there is a substantial part of this country who donald trump, by particularly the way he campaigned for working class issues, economic issues, that they like the guy and they just have a hard time accepting it. this isn't everybody, but i do think, i quote news anchors, who work snarkiness into their questions. one msnbc news anchor asked kellyanne conway during the campaign, how do you face your kids working for donald trump? stuart: i remember. >> that is the kind of thing that ignites the narrative. stuart: my own position, it is noting doing the country any good and i don't think it is doing the professional journalism any good because journalists are not held in contempt but they're not believed. they have lost credibility. >> my bottom line in "media madness" come a time donald trump is no longer president. but damage to my profession i love, lifelong journalist, newspaper guy will be
long-lasting. there is collateral lasting on both sides. like coke and pep sip constantly denounces each other. stuart: thank you,. >> thank you, stuart. nice to see you in person. stuart: nice to see you in person. the title again is? >> "media madness." the war for the truth. stuart: good stuff. now, soldiers, soldiers could be revealing too much information when they exercise? now very strange story. sort it out for me. liz: san francisco app company called strava, they put up a heat map. soldiers who wear fitness devices on their wrist like fitbit, the soldiers were up loading their locations, to track their performance and way you compare your performance to other soldiers. this heat map showed where they were running at military bases around the world, including hot spots like syria, afghanistan. they realized this is putting our soldiers at risk, that you
could see where they are. and even if they went off the base, you could see the roads that they were patrolling. so it's a security frau, backdoor way to see, to track our soldiers movements overseas. stuart: not deliberate. liz: not deliberate. stuart: adjunct to technology. liz: australian university student discovered it. stuart: i will switch gears. we do that a lot on this program to a teacher who slammed military during a classroom rant caught on tape. joining us live on the radio, brian kilmeade, host of the brian kilmeade show. before we get roll being here. listen to the tape. roll it. stuart: extraordinary stuff, kilmeade, come on in. your reaction? >> number one, we do need
recruits and we do need pilots. we lowered standards to bolster up the military to numbers we're allocated funds for. if you wonder why numbers don't add up, teachers like this impressionable, 17-year-olds, 16-year-olds, the teacher they're talk to look up to disparaging comments, extremely damaging, uneducated and inaccurate. when you find out number of high school degrees going into the military actually exceeds general population, as does masters degrees exceeds the general population. those people in the military should be looked up to. they should not be talked to like that. i am a little disappointed as far as i know nobody in that class stood up, my brother, my cousin, my uncle, my dad, my mom sister is in the military, i'm a little offended by that. a time in this country during vietnam war, there was draft, perception of the military was like that. now they have gone to volunteer
force. one thing i felt great about in this country we agreed we supported the military. no matter your rank or branch. that is not the case. scaryingly enough predictably happens in california. stuart: well-said, brian, well-said. i want to change the subject again completely. i want to talk sports with you. i thought one of the great store stress over the weekend was roger federer. he won the australian open. that is his 20th grand slam win. you know what, brian? the man is 36 years old. i find that incredible in a sport where fiscal fitness you have to be just really, really fit to win. i just loved it. >> absolutely. so punishing on the knees, the hips, the joints. to think injuries and power could stay the same this age. we'll not see it again. there was a time a few years ago you thought federer would be contender, not a champion. now he is racking up the championship. here is what is sad in tennis. you need rivalries in tennis.
andy murray in his 30s. djokovic in his 30s. rafael nadal in their 30s. they're breaking down f they're not injured, they're playing a fraction what they used to be. that is what is bad about a great sport with great quality champions. him and tiger woods made a pact when they turned 30, let's get get again. he kept that pact. tiger's body fell apart. roger federer class act. doesn't scream at refs. doesn't get in altercations off the court. sadly that hurts the sport a little bit because bjorn borg would have been nothing without macenroe and connors screaming at the refs and each other. stuart: that is honorable champion, greatest ever. that is something to celebrate. >> what a wonderful way to wrap up the segment. i'm afraid to say anything else. the way you wrapped this up makes me want to quit my job.
never summarize about that. how are the panel treating you? another a-plus panel. stuart: it is brutal. get on with it. brian, thanks very much, indeed, sir. see you again real sir. >> see you in the halls or the lunch room. stuart: you will. check this out, rough housing on the sidelines. rough-housing, nastiness there, not really on the sidelines during the nfl pro bowl. those are new orleans saints quarterback, drew brees sons, two fighting on tv. the son jumped in, end the fight with elbow tackle. bernie sanders said the idea after wall is so 15th century. the president doesn't think so. i bet the head of border patrol union doesn't either. brandon judd on the show. shortly. ♪
ashley: texas congressman louie gohmert says he will not support an immigration bill that builds the wall and keeps "dreamers" in the country. here is why. roll tape. >> if you put them in the same bill right there together, then we're back to 1986. you get the millions and won't be 1.8. you get parents and -- stuart: you oppose it?
you wouldn't do it? >> i have been very, very consistent f we build a wall where we need it, secure the border, then we can work out what we do with people that are here. but, every time legalization, amnesty of any kind, daca is mentioned, there is a new surge and it is going on right now. liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance.
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stuart: merger to tell you about. dr. pepper and snap pell and keurig getting together. dr. pepper shares are higher. 119 on dr. pepper, that is up 23 bucks. yield up to 7.1% dow industrials down 120 points. rates up, stocks down, that is the general rule. that might be what is happening today. -- 2.71%. the border wall. here is what bernie sanders had to say about it. roll tape. >> the idea of a wall which i thought was a great idea in the 15th century when china built the great wall, not so smart today, when we have technology that is much more effective and more cost effective in terms of protecting
the border. so i think you're going to see a lot of debate how much money we should spend on border security. stuart: okay, so bernie sanders says no wall. just use technology. the president is tweeting on this he says look, thank you, brandon judd. he is by the way our next guest, national border patrol council for his strong statement on "fox & friends" we very badly need the wall, et cetera, et cetera. from there on. border patrol union president brandon judd is with us now. brandon, tell you earlier today on our program, louie gohmert, republican from texas. and he says, he was told by the border patrol people last night that there is a new flood of people coming across the border trying to beat the deadline, is that accurate? >> it is accurate. we're always going to see that anytime we talk about amnesty program. but, let's go back to bernie sanders comment. the last i checked president trump, not bernie sanders won the presidency. president trump did it by laying
out a very concise vision to the american public that resonated with them about border security and a wall. frankly it seems like bernie sanders is simply in denial. stuart: now the president wants $25 billion to build the wall. is that all for the wall or does some of that money go to hiring more border age sents. >> what president trump is doing he is taking a holistic approach to border security and he is asking for the amount of money that is necessary for judges, for more i.c.e. personnel, more border patrol agents, the wall. he is looking at it saying there is not, there is a bunch of pieces to this puzzle we have to connect these pieces in order to get border security. frankly under this president, i think it is going to happen. stuart: is 25 billion enough to do all that, wall, technology, border agents, judges? is it enough? >> i think so. and again we'll have to look what the breakdown is.
and that is going to be for omb to take a look at, to give us an idea. but, look, for anybody to say he was unformed about what he was trying to do is completely and totally not true. i spoke with him on several occasions during the campaign. he knew exactly what he was doing. he was speaking with the people that know the most and i think if omb comes back and president, 25 billion isn't enough i think he will listen to those people and he will push exactly for what is needed. stuart: it is not a wall, all 2,000 miles of the border, is it? >> it is not. anybody to portray that is just frankly trying to cast stones at president like they normally do when they attack his friend like heath schuler. they are trying to attack any little niche. we're talking about a wall in strategic locations allows us, border patrol agents to control the entry points of illegal
immigrants. and if we can do that, then we can be a lot more effective and secure the border and stop this debate once and for all. stuart: last one, brandon, how many more border patrol agents would you like to see? >> i would like to see the floor, we have floor of 21,370 agents. that is congressionally-mandated floor. i would like to see the floor 26,000 agents. i believe if we have 26,000 agents we can secure the southwest border and northern border and coastal borders. we need to secure all borders from all the things that enter the country. not just drugs, but weapons, potential terrorists everything. we need to secure all of our borders and i think we can do it. stuart: brandon judd, thank you for being with us. appreciate it, sir. thank you. >> thank you. stuart: now this, college students already hate the president's state of the union speech even though he hasn't delivered it yet. we have the video to show you. you won't believe it. it's next.
gentlemen, is price less. college students were asked about the president's state of the union address, and they hate the it. but there is a twist. it hasn't happened yet. >> i couldn't bring myself to watch it. >> quite racist the very least. it is not up there with -- >> hopefully everything that he is outlined can be overturned by the public opinion. stuart: there's a lot more where that came from, ladies and gentlemen. the guy who did the interview, sitting next to me, cabot phillips, campus reform.org media director. first of all you edited responses. surely you got somebody who said not happened yet? >> absolutely not. not a single person. of the did not happen, not one. more things we didn't see in the video. students going along, i am told he was build a wall chant with republicans. that sound like him i heard he started a chant. just assuming there. i think it starts with number one, on college campuses today
in america it is the hip, in thing to oppose anything that has to do with trump. starts in the classroom. students feel pressure. anytime they hear trump i have to show that i am woke as they call it, in with the movement. i also hate trump. they shut down anything has to do with him. it leads to them not analyzing facts, just shutting him down because he is trump. stuart: i understand that i understand the anti-trump movement. i got it. what i don't understand is the lack of knowledge. college students, nyu students, that is who they are, kind of a smart bunch, how is it that they don't know that the president delivers the message on tuesday night? >> many of them will tell you they are intentionally not following politics because they can't stand president trump. there is really no excuse in this day and age how prevalent, available information is, but also you need to look at information they are getting. it is not that they're not following politics at all. but in the classroom, professors teaching them politics, coming them from biased, slanted perspective. stuart: that is true.
>> they make up in their mind what politics is all about. they don't understand they're getting one side of the discussion. it is not balanced thing. they don't get anything from the right side. stuart: after you did the interview, we know we had you, ain't given the speech yet. >> we started with that. some of the students got upset. maybe we won't get anybody else to talk to us. we decided to let them go on their merry way to find more students to talk to. stuart: you will follow up with this you will ask them all over again, a whole bunch more questions? >> we'll give them on thursday, give them that president obama said from his state. union. told him trump said those quotes. see how they react. i don't think they will like obama's quotes. stuart: come back soon. good stuff. appreciate it. this is a big week for profits. a third of the 30 stocks in the dow, a fifth of the s&p 500, four of the big-name techs stocks they will report their earnings this week. it's a big test for the tech
>> on this program we have followed the five big american technology companies very closely. stock prices have gone through the roof. many viewers have been enriched by these stocks. this week, a test for apple, m amazon, alphabet and facebook. they report how much money they have made and how much they expect to make in the future. their first test is living up to expectations and we become accustomed to blowout profits, anything short of a massive profit and a strong outlet will be taken as a failure. they themselves have created a very high bar. there is a second test.
what will these tech companies do with the money they get from tax cuts and the money they bring back from overseas? i suspect at least some of that money will go to stock buybacks and/or dividend increases. q nancy blows in the left. if any of the benefits fall through to shareholders, they will say told you, crumbs for the workers. the real money goes to the rich. the left will use this as proof that business failed a tax-cut test. pension funds, 4o1k are among the biggest holder of stock and have already benefited from the trump rally. they will do even better if big tech helps shareholders some more. last week, the president wowed them with his america is open for business message. this week we will see a big tech while them again paired we will take you through it. the third hour is about to begin.
>> at the white house, president trump will formally swear in alec cesar as the new health and human services secretary. he has been out frequent guest on this program. his the former president of eli lilly. check the big board. we are near the low of the day down 123 points. it's not a major pullback but we are down about half percent. chief investment officer of the branson group joins us now. what we get to first, 27000 or significant pullback. >> a significant pullback, no, i think we could pullback a little bit before we hit 27000 points but it seems a little silly to guess against it. i think the short-term movement is less important than of eventually we are
going to 30,000. >> you got that in very nicely. you think we will go to 30,000 in the reasonably near future. >> i have a very high degree of confidence in that. >> interest rates are creeping up. i have a yield of 2.71% on the ten year treasury, that is a warning signal for stocks. >> it can be, although it has not been from 220 up to 265 and 270. markets have rallied as interest rates have moved 50 basis points in the past year. i think 3% is maybe a number to watch, there's a big difference between the rate going higher because of growth, i thought that's what we want versus the rate going higher because of inflationary pressures. it's not the rate going higher that matters, it's the reason it goes higher. >> what do you think it is. >> its productive economic growth.
i rates are going higher because economic growth is what you want and that's what stocks want. it's when inflationary pressures enter or if they enter that you have to be more careful. >> market is down 130 points because of a sharp rise in interest rates and maybe inflation. >> i think it's more apple than anything else today. as we sail the time, 123 is not what used to be. it's equivalent to a 50 or 60-point. >> that brings me too the big tech companies. they report this week. i think they are likely to put a big chunk of the money that they bring back from overseas and they get from the government and tax cuts, i think they will put a lot of it into stock buybacks and dividends. what say you. >> i hope they do and i also think that will not be the whole story. they are going to hire new people, they are going to raise wages, they will invest in new expenditure programs. it isn't just apple, amazon
and google that we should talk about. there's a whole spectrum out there that needs new infrastructure, new business investment but i think to the extent that there's dividend payments and stock buyback, there is capital formation taking place that is vital to economic growth. it will be demonized out of ignorance by the left, but as far as the fundamental benefits to the economy, it's substantial, but unlike 2003 and four, you see companies going out of their way to advertise bonuses, wage increases, new hiring, all of that will play into a progrowth narrative. >> interesting. thank you for joining us and we appreciate it. i like that bit about 30,000 in the near future. professor of economics at the university of maryland is with us. do you think we will see the time in the relatively near future where all of the fortune 500 companies have come through with bonuses or wage increases or extra pension money for their
workers? >> the question is will they come back with more wages than they would if we haven't had a tax-cut. we don't really know. there will be upward pressure on wages. some due to the tax-cut and that's a good thing. there will be bonuses. a lot of companies can't afford to raise wages much more than they planned so a bonus is a one off. not a bad thing. >> it seems like it's a competition at the moment. a lot of people are saying where's my bonus and they look over at the street at the other guy and they got a bonus so what about me. it's almost a competition to pass something through. >> everybody wants to be in the good graces of the president of the united states. look at some of the people who are doing this. apple, i don't think mr. trump loves cupertino california or whatever they call that place. i don't think they're really loved out there but they want to look good for the sky.
they need his good favor. >> okay. how about the big tech. when they bring the money back from overseas and they get all the extra money from the tax cuts, will it go into share buybacks and dividend increases? that would be very good for the stock price. >> i think some of it will and more of it, there will be more buybacks and more dividend increases and if we hadn't had the tax-cut. one of the problems we've had in american enterprises at the return on capital have not been high enough. i don't think the market is overvalued. the s&p ratio is still below 25. it is still lower than it was a year ago. we've just come off a big boom. my feeling is this is needed to price capital. it's an appropriate return for shareholders so i think overall it is a good thing. my feeling is that wages are going to be determined in the marketplace and is a lot of upward pressure. did you know, in 2017 less skilled workers got a bigger
race and highly skilled workers, that never happened when barack obama was present and he was so busy banging on the heads of american business and they were so numb from what he was doing to them that it really was impossible to do those things. at 2% growth, there is not enough that in the system to share it around. at 3% growth it taste more like whole milk and every but he gets to be happy. >> let's see if we can get to 4% growth. >> i love it. thank you. i want to get to apple because they are the story of the day on the market. they cut in half their iphone ten production in the first quarter of this year. we are now in that of course. apple made that move because of slow than expected sales. apple stock is down nearly 2%. that takes a lot of.off the dow and contributes to the 135-point drop as we speak.
despite the overall market drop, we still have eight tao stocks hitting all-time high. they are walmart, united tech, visa, home depot, microsoft, j.p. morgan, goldman sachs and united health. all of them on your screens, all-time high today despite a down market. last week we showed you a clip of charles schumer calling for an end to chain migration. now we found an old soundbite from hillary clinton suggesting dreamers shouldn't necessarily be allowed to stay ahead you will hear them both, next. and, new york's governor, that's the man suing the federal government over the tax bill teaming up with jersey and connecticut. that's coming up. on what grounds are they suing? and then president trump will sign in the new health and human services secretary.
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can you believe this, a new app will help illegals cross the u.s. mexico border. the creators of the app haven't revealed themselves but the app alerts them to the best path into america. it shows obstacles like fences, cameras and border patrol agents. how about that. now this. an old soundbite from hillary clinton has resurfaced. listen to what she said four years ago about illegals. roll tape. >> we have to send a clear message, just because your child gets across the border, that doesn't mean the child gets to stay.
we don't want to send a message that is contrary to our laws or will encourage more children to make that dangerous journey. >> i'm not laughing, i'm sorry. my how times change for joining us now is nick adams, author of the book green card warrior. that was red meat, go at it. >> last week when i was on your show, you said it was the first time you ever heard latin quoted in an australian accent. this will be the first time i've ever actually agreed with hillary clinton. i think she was exactly right when she came out and said that. it's true. >> sarcasm is a low form of wit, as you know. >> i think we have a very serious problem in the united states. i think it needs to be corrected, legal immigration doesn't work, legal
immigration works. that's the problem of the highest order and that's what scott's be addressed. >> have a bone to pick with you. i say look, if you get the wall built or border security, you and chain migration and you and the lottery system. you do all of that and then you say okay, dreamers, that's okay. that to me is an okay deal. but not to you. you are a cruel man. >> look to quotes cannot come to mind. bismarck said that politics is the art of the possible. another man once said that don't make perfect the enemy of the good. that was reagan. but either way, that's really important. the idea is that in the presence of opposition, in the presence of other parties and possibilities, you can't always get what's perfect and you have to go and get a pretty good deal. so from that standpoint, i am supporting of this. ideologically, and as a matter of principle, i was a dream or two.
i dreamed from the ages of six years old about coming to this country and when i decided to come, i did everything right. i had a chest x-ray to prove i didn't have tuberculosis. i had a police check from every different place that i lived in. i had a get eight different vaccines to come here. i had a watch the counselor office could care less about my dreams. >> but i would put that principle aside in favor of a deal, do what is possible. if you can get a deal, build the wall, i think that's the deal to take. >> absolutely. if i was a congressman, yes but as a matter of principle i don't think amnesty is the right way to go because to quote another person, donald rumsfeld, former secretary of state famously said that weakness is provocative and i think that if we have a weak approach to this, people will take advantage of us as they have.
>> i think they are already. there's more people coming across the border now because of talk of amnesty. >> let's build a wall. >> let's do it. >> to be so cruel. esther green, thank you very much indeed. good to see you. >> ice will reportedly start tracking license plates across the country. they have gained access to a database of more than 2 billion license plate photos. is that 2 billion. >> the database also has real-time location tracking. money coming in at lockheed martin. the stock is up about a dollar. it had been up a lot more than that earlier. the overall market is weighed down. that may have hurt them as well. can they walk away from ge although investors are walking away from ge, still down, just above $16. share. we told you about the california liberal lunacy, or
poses to jail waiters who offer plastic straws to customers, coming up yet another republican gubernatorial candidate for california. doug owes will be with us. >> that sucks. >> but first, can you guess which cities are the happiest in america? we do have an answer for you and we will tell you next. >> interesting ♪ ♪ ♪ ♪
the me take you through this. they just returned from serving overseas and gave his wife a big surprise that check for late in north carolina. he was having dinner with friends and stopped to take a picture. he took the costume had off and revealed that it was her husband. welcome home. before the break, which city was the happiest, a survey said it's boulder colorado. i won't tell you why. it's followed by santa cruz california and charlottesville virginia. the survey looked at factors such as civic engagement, walk ability, whether and healthy food options.
>> that makes all the difference. >> and marijuana. las vegas, a motorcycle broke a new world record at an auction. it's in 1951 vincent as it's known. very rare. sold for $929,000. it broke the previous record for a bike owned by steve mcqueen when it went for about 750,000. by the way, the mcqueen bike was not the bike used in the great escape. elon musk's boring company says it's our $4 million worth of flamethrowers in the past two days. that cost 500 bucks each part his idea to start selling them was kind of a joke. in december he said if his company sold 50000 hats he would start selling flame throwers. he sold the hats so he's selling flamethrowers.
new york governor andrew cuomo is teaming up with new jersey and connecticut to sue the feds over the tax bill. more on that coming up. on what ground is he suing? and steve wynn, accused of sexual misconduct later resigned as rnc finance chair, the stock took a hit friday, another hit today, clearly shareholders have no protection here and the board is on the spot. in a moment, president trump formally swears in alex lazar as the new hhs secretary. the markets right now coming back from session lows. we are only down 90-point spread we had been down 140. we will be back in a moment. ♪ ♪ ♪ ♪ ♪ ♪
any moment now president trump will be formally assigning his new hhs secretary. he will come through that door to do the signing. will he say anything? if he does, you will know about it real fast. let's move on quickly. we have checked the big board, stocks are barely off their low of the day. we were down 140. now we are down 120. who better to bring in at this moment that charles payne, the man of the hour. welcome. interest rates up to 71. the treasury, stocks down, is
that the connection. >> i don't see it yet. having maybe a three and half percent. right now i see rotation out of bounds and into equity. i'm not worried about this slight slip in yield. >> you very been big on what's bubbling away beneath the surface. >> through the roof. people are spending money big time. incomes are starting to go up. that's the economic driver. we are seeing it in the retail sales that holiday spending was phenomenal. people believe that it's the ultimate one-two punch. >> do think we are about to start another leg up for this
rally? i think you think the president state of the union tomorrow night sparks another round. >> there has been two moments when president trump has spoken where the market has reacted positively. remember, initially when it was apparent that he would win the dow was up 800 points. who could forget. then he gave the speech that he pledged to be the president for every citizen in this land. they thought he was going to spike the ball. he was presidential. you go back to february 28 to the joint session of congress, same thing. same presidential attitude. the market took off. we are up 28%. i think tomorrow night is an amazing opportunity. we might have gotten a hint of it that he will this prove his credit once again -- his critics once again. >> so you think we will hit 27000 before we have any pullback.
>> absolutely. >> we had another watcher on earlier who said we are headed to 30,000 within the foreseeable future, within my lifetime. [laughter] >> that means you'll definitely live in 22019. if you look at what's happening recently, class a truck orders, they have surged in the last three months. retail sales have surged. if you look at the core of what makes the economy move, no one is ordering that many trucks if they don't anticipate this to be long-term. this is just the beginning. >> people should be excited. >> it's a wonderful thing. i want to pack this in before we go to the white house. i want you to explain why
governor cuomo is teaming up with the elitist in new jersey and connecticut to sue the feds over the tax cut, on what grounds. >> it's legal buffoonery. i saw them and i thought the three stooges. literally, there is no legal ground for this, no constitutional grounds. you can understand why. this isn't even about both. the top 1% of earners in new york state taken average deduction of $500,000 a year for the state and local taxes. they are heading out the door. those taxes are no longer deductible. so he is desperate to do something. of course, the right approach is to lower taxes, not these bogus lawsuits. >> he can't do that, no seriously. >> yes you can. look at florida. florida has 2 million more people than new york. it's now in third place among the states.
cuomo announced his budget for new york state. double the size of florida's budget. in other words new york spends twice as much taking care of many fewer people. twice as much fraud, waste, corruptions are the reason. >> or users are going to tell me that suddenly new york will turn around and become like an american dynamic texas or florida and lower taxes. >> you know that's not what happened. >> look i was here 94 when we want an election against his taxes and turn the state around. it can be done again. >> maybe not a republican party. >> let me tell you why this is bogus. read the 16th amendment which came out and made federal income tax constitutional. allows the federal government to impose taxes on any kind of income. it says specifically that it's
okay and no deductions are guaranteed. it's up to congress. >> stay there please print look who has just joined us on the set. does governor cuomo have a legitimate argument when he is suing the feds over the tax cuts. >> absolutely not. everything he said is correct and consistent with standard law. in fact, as recently. [inaudible] the supreme court contact anything it wants. the question is will the public tolerated, not will they embrace it. >> let me turn to betsy mccoy. he is correct about that. he is always correct. >> he is turning red.
[laughter] ladies and gentlemen, the president walked in the room for the official signing in of alex as a new hhs secretary. i believe the president will make some remarks. just as an introduction to alex lazar, what we are hoping for is that they will branch out. maybe he will answer. he can normally never resist no matter what. >> i wish i were there. i would just love to be there. the man loves responding to the media and here he is. >> we been looking for this day for a long time. i am thrilled to be here to administer the oath of office to america's new secretary of health and human services.
he's going to get those prescription drug prices way down as a little bit extra. it will come rocketing down. alex is joined today by his father. thank you, congratulations. of course i will only say congratulations if he does a great job. , which i know he will. his wife jennifer, his daughter claire, his son alex, his sister stacy and sister-in-law beth and numerous friends, and thank you all for being here. we appreciate you being here. upon taking his oath of office he will take the helm of the department he has already served with tremendous distinction. first as general counsel and later as debbie secretary. in both those roles he was outstanding and an incredible public servant. people talk about him to this day. he was instrumental to improving the department
operations and advancing their emergency response capability. he knows inside and out the impact of government policy on patients, healthcare and prices. as the former president of lily usa, big company, great company he did an incredible job. he brings invaluable private sector experience to complement his years of public service. the department of health and human services has already achieved a great deal rolling back regulations that drive up health care costs but we have a long way to go. a lot of people very happy with the amount we've done already but alex will bring that to a brand-new level. alex will continue to implement the administrative and regular changes needed to ensure our citizens get the affordable high quality care they deserve. he will help lead our efforts to confront the national emergency of addiction and death due to opioids.
i think will be very tough on the drug companies in that regard and very tough on doctors in that regard because what's going on is pretty incredible. will finally put an end to the plague on the lives of families and communities, people going for a minor operation into a hospital and come out and they're addicted to opioids. they are addicted to drugs after a short time had we had to get the prices of prescription drugs way down and unravel the web of special interests that are driving prices up for medicine and really hurting patients. we will get that done. it will be so important. you look at other countries that pay a fraction for the exact same drug, the exact same pill in an identical box from the same factory cost much more, many times more than it does in other countries. no one knows that process
better than alex. we will get it done because it's very unfair to our country. alex, i know there is no one more capable, qualified and committed then you to overcoming these incredible challenges. i will say, prescription drug prices will be one of the big things. i know you can do it. you know the system and you can do it. now i will ask vice president pence to formally administer the oath and again, i just want to congratulate alex and his family and god bless you all. he has a very important job to do. thank you for giving him to us and we will give him the chance.
[applause] >> okay, as the actual swearing-in is taking place, i believe his job, according to the president is to get prescription drug prices down. >> that's right and he has talked in the past, the head of the fda has about enabling generics to get on the market quickly with fewer barriers. of course extending patent life for the brand-name drugs would also help. >> they pay a fraction of what people in the united states pay for the same drug. they will bring that cost down. there's another part of the job that will be very important. he will work hand-in-hand to make sure people in the small group market will be able to buy a much wider selection of plans instead of the one-size-fits-all government designed obamacare plan with all its bells and whistles and very high price.
>> so his job is to gradually get rid of obamacare. >> exactly. he knows the regulatory environment inside and out. he knows where all the regulations are and what to do with them. that's why he was a great pick. >> he became the 24 secretary of health and human services here in the united states. only in america, the grandchild and great grandchild of immigrants from lebanon in the ukraine and england, switzerland get to have that opportunity. mr. president, thank you so much for the confidence that you have bestowed upon me in the incredible department you have entrusted me with. mr. vice president, thank you for your many years of friendship and administering the oath today. to my family, thank you for all of the many years of support and the years of support coming. it's going to be tough, but we will do well with it. i would also like to thank the
79000 men and women of hhs who, it is now my great honor to leave. i know these people, i know this team and the deep commitment that they have for the mission of hhs to enhance and protect the well-being and health of all americans. that is a solemn charge. it is a charge i am committed to and as you heard from the president it is a charge that includes his personal direction to me that we have to tackle the storage of the opioid crisis and we will bring down prescription drug choices. i look forward to that mission, to the work ahead and now it's time to get work. thank you very much. [applause] >> he is in. to recap, his job is to gradually get rid of obamacare and put something different in its place. >> more choice for consumers.
>> you think you can do that? >> absolutely. he is very well-qualified and knows the department inside and out. >> with the markets and the tax cut, it's a important speech and we cover immigration and for many years they been talking immigration and never got anything done. were going to get something done. we hope it will be bipartisan. the report is really don't have the votes to get it done any other way so it has to be bipartisan. hopefully the democrats will join us so we can really do something great for daca and immigration. it will be a very important speech on trade, the world has taken advantage of us on trade for many years and, as you probably noticed we are stopping that cold and we have to. we have to have reciprocal trade. it's not a one-way deal. we have a lot of things to discuss and we will be discussing them and i hope you enjoy it. thank you all very much. we will see you tomorrow night
night's. >> he resisted the temptation to answer another question. the judges with me. i have to get to steve when because the casino stock has taken a big hit after he was charged with sexual misconduct over a long. of years. the latest is the board of directors on the spot. >> and rightly so. in my end of the world it is offensive that an action can take place just on the basis of an allegation. there's no due process but the allegation is so credible to investors that the stock price is showing. it is apparent that the board failed in its duty to the shareholder to make certain that the person was running the show, even though this is the guy who created the corporation is not engaging in
behavior that is repellent and maybe even unlawful. >> look at the stock go down $13. how do you stop this slide. i've got to get to one other subject. action on this memo written by the house intelligence committee. >> it is meeting at 5:00 o'clock this afternoon to decide whether to release it. only he can declassify. last week the d.o.j. came out against releasing it. before the d.o.j. saw the document, sunday afternoon chris ray, the director of the fbi went to the secret vault in the capital where these materials are held and examine the document. he could not say if it contained classified materials or not. he needed his people to look at it and he wanted to take it
with him but he couldn't. the department of justice, donald trump department of justice said it shouldn't be released before they sought. after they sought they couldn't say why it shouldn't be released. that's where things stand. >> it's a mess. >> the department of justice has leadership a point of by the president. they are ill serving him. >> thank you very much. interesting news in the last minute there. >> in california, democrats propose laws that are examples of extreme liberalism, to say the least. here it is. anybody who gets a driver license will be registered to vote in any illegal immigrants can get a drivers license. they get the license, their legal, the registered to vote, automatically. double the corporate, here's another thing, double the corporate tax to counter the tax plan. spend a billion dollars for healthcare for illegal immigrants, punish waiters with jail time for offering
straws to customers. amazing. joining us now is doug, he is republican candidate for governor. i'm looking at all these ideas and what strikes me is the idea of allowing illegals to get a drivers license and be immediately registering them to vote. you cannot police that system. it will be abused. that's extraordinary. >> the democrats here in california who are in elected position are out of control. this is a step toward allowing illegals to vote. it's purposely constructed to look like something else but that is the direction they are headed and you are correct. >> what are you going to do about it? >> forgive me but i'm making the assumption that the republicans will not win the governorship of california. forgive me for that. i know you are probably disagree with me but i'm making that assumption. if another democrat wins, this is what were going to get.
>> there is a path to victory for republican. that republican needs to pull along at least one of the houses in the legislature so we have a vetoproof minority. there is a path. the democrats are on a tangent playing identity politics that needs to stop and i'm the guy to do that. i'm trying to rebuild the california dream. >> and you overcome greens, government unions, hispanics, black folks and women? >> i don't think you can. i don't believe their coalition is as strong as some people think it is. i have a coalition of people who want to pursue the california dream. they can't buy housing, they can't buy gas, they can find a job, they can't find school that's affordable. all of those things play to my strengths where i've been a problem solver all my life and my public career. this is doable. >> okay. i will roll some tape from
nancy pelosi where she is bashing president trump's immigration proposal. for the benefit of our viewers, one more time, role-play. >> last night the president put forth a plan. that plan is a campaign to make america white again. they are changing the character of our country by what they are putting forth. they bring a tear to the eye of the statue of liberty and fear into the heart of people who are here playing by the rules. >> go at it. your reaction. >> this is an example of mrs. pelosi appealing to the extreme within the democratic coalition. the facts are, we admit a million immigrants to this country legally every year. president trump's.has been, and remains, come here legally, do not come here illegally. heshe is arguing for vast
breaking of the law. that's her program. the republican program is comply with our law and will process your application. there's a whole difference between the two of those. she is off base and appealing to the extremes of her party. it reflects the complete lack of a policy direction on the democratic part. >> the republican candidate, thanks for joining us. after breaking news. congressman rodney says he will retire at the end of his current term. he is the chair of the house appropriations committee. he is republican who has long held his seat in a democrat district. do we have. >> he is the sixth committee chair to retire. not a huge surprise that he
was going to struggle in november. >> i think it's something like 3 32 republicans are exiting. it's a striking number. twelve are not running. >> he is leaning heavily against trump. >> this. the flu season reportedly on track to be among the worst in 15 years. schools and a dozen states are being shut down. students are getting sick. doctor mark siegel is with us. >> there is still time to get the flu shot. it will still go on for several weeks and it does decrease your chances of getting it. it increases your risk of spreading it too someone who is at high-risk. it decreases the severity of symptoms and it's well worth
getting. when the universal flu vaccine is out in a couple years i will convince you to get it. >> it is the most serious flu outbreak or one of the most serious. real cause for concern. >> my prediction is it will be the worst since 2009. already widespread in 49 states and we are closing schools. it's correct" because kids put it on surfaces. they wiped her nose on things. it grows and stays on surfaces and they are close together. >> what exactly is it? is a little bug that grows on surfaces and if i get anywhere near it i inhale it and i get it. >> yes, you get it through your nasal passages. once it's in there, your immune system kicks up. it's a very powerful respiratory virus. people then get secondary infections like you can get pneumonia. you can die of a heart attack
because it stresses their syste system. >> that's what worries me a great deal. i do see reports of healthy, young people succumbing to this and dying from this. you are saying it's because it lowers your immune system. you get the flu in your immune system is down and you're susceptible to something else. >> either your immune system becomes hyper and you die from a systemic reaction, that's what happens when you see a child that's 12 years old otherwise healthy, dying in a few hours. that's a revved up immune system or, in fighting the flu your system gets knocked down and you get a secondary infection. i'm often very aggressive treating the flu. i might give tamiflu and i'm a given antibiotic at the same time to treat the bronchitis or sinus or ear infection that you get at the same time. if you have a child and they're having trouble breathing or not taking in fluids or they don't seemed like themselves, get them to the hospital. we have to hydrate intravenously.
>> on average in the flu season like this there are 5000 hospitalizations. it's for the tamiflu and for intravenous hydration. >> the rate of hospitalization was 37. 100,000. now it's 41. 100,000. that implies it speeding up. the contagion is speeding up as it goes around the country. is that accurate. >> that's exactly accurate. we are going to see 50 million people get the flu by the time the season is over. >> 50 million in the united states. >> with about 50000 associated deaths. this is very serious. >> we have 320 million americans. you say 50 million get the flu. >> this kind of season, yes. about 50 million will get the
flu and 50000 will die from complications spread we have to diagnose it early, treated with tamiflu, key people hydrated and treat secondary infections with antibiotics. >> this is a huge merger here. dr pepper, snapple and hearing green mountain are getting together. dr pepper shares hit a record high. this merger brings together some of the biggest names, seven up, sunkist, a&w root beer, they're all getting together. one more conglomerate that dominates. interest rates are rising and that's one of the reasons we have a downsize move on the market. i want to bring caterpillar to your attention, it is the biggest drag on the dow right now. people asked me why is that. while caterpillar is the dow stock. when it goes down significantly it drags down
neil: stuart: california hit by three earthquakes in one day. this happened last thursday by the way. the strongest in northern california, magnitude 5.8 but it hit 100 miles off the coastline so the vibrations were not as strong when they reached the land. no injuries or any damage reported, three in one day, california. now, we got dr. pepper snapple and keurig green mountain getting together, $18 billion deal. the most important point here, something maybe you're not aware of. the family, a german family which owns keurig green mountain, who are they? liz: jab holding. they're in vienna.
the reisman family. we reported months ago, this family was getting rid of jimmy choo they were divesting properties. what is their focus. they take on coca-cola and pepsi cola. this is beverage company. dr. pepper, together with coffeemaker keurig. companies like timothy which keurig owns. stuart: some are big names in the drink business, not alcoholic. tulley's, i'm not familiar with them. keurig, green mountain, the doughnut shop. liz: yes. >> m&a the levels have hit we haven't seen in 18 years going back to 2000. it's a good sign. stuart: they are flush with cash. ashley: they are flush with cash. liz: dry powder cash getting repatriated. stuart: dry powder cash. liz: it is sitting there to use it. spark a deal. stuart: keep your powder dry.
okay. we have the dow industrials right now down exactly 100 points. a little unusual for a monday morning at any point in the last 18 months. normally we go up most days. normally go up most mondays but not today. neil, it's yours. neil: stuart, thank you very, very much we're keeping an eye on that. what would be the tipping point, what would get you stock investor look at alternative investment like bonds? the idea goes something like that, the more you find a reason to be in safety of bonds where you have uncle sam backing your investment up, the less you look at a market run far very, very fast. now is the tipping point 2.7%. could it be 2.8%? could it be up to 3%? hard to say. usually consensus is wrong. they say 3% could be the tipping point. we heard from a number of top tier investment managers s